1.

Match the description in the right column with the information characteristic in the left column.

1. Relevant

a. The report was carefully designed so that the data contained on the report
became information to the reader

E, C 2. Reliable

b. The manager was working one weekend and needed to find some
information about production requests for a certain customer. He was
able to find the report on the companys network.

c. The data on a report was checked by two clerks working independently

3. Complete

G, B 4. Timely

d. An accounts receivable aging report that included all customer accounts

5. Understandable

e. A report checked by 3 different people for accuracy

6. Verifiable

f. An accounts receivable aging report used in credit granting decisions

7. Accessible

g. An accounts receivable aging report was received before the credit

manager had to make a decision whether to extend customer credit

ACCT 3100
Chapter 1 Homework Solutions
Page 1 of 2

1.8

Classify each of the following items as belonging in the revenue, expenditure, human
resources/payroll, production, or financing cycle.
a. Purchase raw materials

Expenditure cycle

b. Pay off mortgage on factory

Financing cycle

c. Hire a new assistant controller

Human resources/payroll cycle

d. Establish a $10,000 credit limit for a new customer Revenue cycle

e. Pay for raw materials

Expenditure cycle

f. Disburse payroll checks to factory workers

- Human resources/payroll cycle

g. Record goods received from vendor

Expenditure cycle

h. Update the allowance for uncollectible accounts

Revenue cycle

i. Decide how many units to make next month

Production cycle

j. Complete picking ticket for customer order

Revenue cycle

k. Record factory employee timecards

- Human resources/payroll cycle

l. Sell concert tickets

Revenue cycle

m. Draw on line-of-credit

Financing cycle

n. Send new employees to a business ethics course

- Human resources/payroll cycle

o. Pay utility bills

Expenditure cycle

p. Pay property taxes on office building

Expenditure cycle

q. Pay federal payroll taxes

- Human resources/payroll cycle

r. Sell DVD player

Revenue cycle

s. Collect payment on customer accounts

Revenue cycle

t. Obtain a bank loan

Financing cycle

u. Pay sales commissions

- Human resources/payroll cycle

v. Send an order to a vendor

Expenditure cycle

w. Put purchased goods into the warehouse

Expenditure cycle

ACCT 3100
Chapter 1 Homework Solutions
Page 2 of 2